European Court of Auditors' report is a constructive reference point for future implementation of Rail Baltica - Transport Ministry

RIGA - The European Court of Auditors' report on European Union (EU) transport infrastructure projects, including Rail Baltica, is a constructive reference point for the future implementation of Rail Baltica, the Ministry of Transport (SM) told LETA.

Transport Minister Atis Svinka (Progressives) pointed out that although the report is critical, its constructive criticism will certainly contribute to the progress of the project.

He said that the goal set so far to ensure a cross-border connection with the European transport network is challenging, but the implementation process is continuing and depends on the availability of funding and joint work on the project.

The ministry informs that the European Court of Auditors' report clearly highlights the challenges faced by cross-border projects of this scale, including the sustainability of financing, changes in technical solutions, and the complex coordination of involved parties. These challenges have been the subject of ongoing professional discussions with the European Commission (EC), European transport corridor coordinators, and partners in the Baltic States.

According to the ministry, cooperation with the EC has been constructive and solution-oriented, and the financial support provided by the EU has been crucial in advancing Rail Baltica throughout the region.

The ministry adds that Rail Baltica is one of the EU's most strategically important cross-border infrastructure projects, involving all three Baltic States, with close cooperation also taking place with Poland and Finland. The added value of this project requires additional coordination, and Latvia expresses its readiness to continue close cooperation at all levels.

At the same time, Latvia agrees that the main priority at present is to ensure significant progress in the first phase of the project, taking into account both the current security situation in Europe and the agreement on cross-border connections as the highest strategic objective. The risk posed by cost increases is also recognized, and Latvia is implementing measures to limit this risk, clearly respecting the available funding and the fiscal framework set by the government. In accordance with the government's decision of December 10, 2024, the first phase of the project will be carried out in line with the available funding, without taking on financial commitments without adequate coverage.

The ministry informs that the work carried out in Latvia in 2025, in close cooperation with builders and technical experts, will allow the base route construction projects to be further adapted to the available EU Connecting Europe Facility (CEF) funds, while maintaining the quality and technical standards of the project. This approach will ensure the continuity of the project and more efficient use of EU funding.

In the ministry's view, the transition of the project from the planning to the active construction phase requires a more flexible approach from the EC in coordinating changes to technical solutions. Latvia has repeatedly called on the European Climate, Infrastructure and Environment Executive Agency (CINEA) to promptly approve the optimizations necessary to adapt construction projects to both technical realities and available funding. However, the existing legal framework is not sufficient to make even minor changes quickly and without losing funding.

The ministry also notes that positive progress has been made with significant results in 2025 at the Riga Central Station and the Riga Airport connection to Imanta Station, attracting funds from the EU Connecting Europe Facility (CEF). This experience will be valuable when planning to attract funding in the next EU multiannual budget period, which requires attracting funds from various EU financial instruments.

At the same time, Latvia strongly supports the draft regulation prepared by the EC for the establishment of the Connecting Europe Facility for the period from 2028 to 2034. This proposal is an essential part of the EU's new multiannual financial framework, and the proposed increase in funding for transport and military mobility confirms the EU's clear commitment to continuing the development of strategic cross-border transport projects.

Latvia emphasizes that this approach is essential both for the modernization of the European transport network and for strengthening regional security. Rail Baltica, as a dual-use infrastructure, is a central element in the EU's military mobility corridor, and Latvia has invested significant effort over several years to ensure the progress of the project, financial discipline, and compliance with EU standards, the ministry notes.

Latvia has also made it clear that it will not support any reduction in funding for the transport section of the CEF, including military mobility projects, in future negotiations. This position is based on both national security interests and the conviction that Rail Baltica and other strategic projects are important for the stability and connectivity of Europe as a whole.

Latvia will continue to work closely with the EC, Member States, and all project partners to ensure the successful and timely implementation of Rail Baltica. Latvia expresses its readiness to actively engage in the search for practical solutions and the improvement of the necessary processes in order to strengthen the resilience and mobility of the EU transport network, while promoting regional security interests. Rail Baltica is a strategic investment in the future, and Latvia remains committed to ensuring its high-quality implementation, the ministry emphasizes.

As LETA reported, the costs of the Rail Baltica railway project are likely to exceed EUR 23.8 billion after the completion of phase two, the European Court of Auditors says in its report on the European Union (EU) transport infrastructure.

The report contains the European Court of Auditors's updated considerations and findings, obtained in an audit similar to one conducted in 2020. The report focuses on the costs and timelines of eight megaprojects of the trans-European transport network (TEN-T), including Rail Baltica.

The European Court of Auditors concludes that the 2030 deadline for the completion the EU's core network will not be met and that the costs of two projects have increased significantly, including Rail Baltica, which has more than doubled in cost since 2020.

At the time of the 2020 special report, the official cost estimate for Rail Baltica was EUR 5.8 billion (in 2017 values). In the report, European Court of Auditors pointed out that, based on the information then available, costs might further increase and showed a risk-adjusted total cost of EUR 7 billion. In 2024, the project promoter for Rail Baltica performed a new analysis and concluded that the estimated total cost of the full TFI had risen to EUR 23.8 billion at 2023 prices.

The main reasons identified in the analysis were the lack of maturity and detail in the previous estimates (which accounted for around half of the increase) and changes in the project scope and design. A joint audit report from the national audit institutions of the three Baltic countries involved largely confirmed this analysis. The promoter highlighted the risk that the new estimate might still not be fully accurate, as there were mature design studies (on which the estimate was based) for only one third of the total distance.

As regards the timeline, the project partners decided to split the TFI into two phases: the first phase involving only a single-track railway (with a total cost of EUR 15.3 billion) to be completed by 2030, and a second, more complete phase without a precise timing. Due to the prolonged timeline for the works, it is likely that, after completion of the second phase, the cost of the TFI will be higher than EUR 23.8 billion.

For Rail Baltica, the previously reported delay is destined to increase further, as the latest plan at November 2025 was to have only a first phase of the project ready by 2030. However, the European Court of Auditors could not quantify this increase, because no implementation timeline exists for the second phase.

It was also reported that, according to RB Rail, the cost of the first phase of the Rail Baltica project in the Baltics could reach EUR 14.3 billion, including EUR 5.5 billion in Latvia, but there is potential to save up to EUR 500 million by optimizing technical solutions, as well as cutting other costs.

The total cost of the project could reach EUR 23.8 billion in the Baltics according to the cost-benefit analysis. A previous cost-benefit analysis in 2017 estimated the total cost of the project at EUR 5.8 billion.

The Rail Baltica project will build a European standard gauge railway line from Tallinn to the Lithuanian-Polish border to connect the Baltic States with other European countries by rail. A new 870-kilometer European-standard (1,435 mm) railway line with a maximum train speed of 240 kilometers per hour will be built in the Baltic States.

Rail Baltica is a double-track, European standard 1,435 mm gauge electrified railway for passenger and freight transport to be built from Tallinn to the Lithuanian-Polish border. The overall length of the railway will be 870 kilometers.